Energy Development Corporation will be delisted from the Philippine Stock Exchange soon.
It’s not fake news, but it’s old news.
EDC deliberately expressed on press releases last year its plans of getting delisted from the PSE this year.
What made EDC decide on this?
It’s part of their corporate strategy. They want more control over certain policies.
Besides, when your public float does not meet the minimum requirement of 20%, you’ll be subjected to a voluntary delisting.
As soon as you become a public company, you lose some of the privileges that you used to enjoy as a private corporation.
Nonetheless, the emphasis on going public is not so much about losing some of the privileges you used to enjoy as a private corporation but more on leveraging the benefits of becoming a publicly-listed company.
However, in this case, perhaps, the EDC management has arrived in the decision that they’re better off becoming a private company again.
I am not going to show you the stock’s chart because not much of what happened today needs the usual in-depth and comprehensive technical analysis I used to do other stocks.
I already explained in vernacular what happened to EDC today to Andy, one of my followers on my Facebook Page.
Andy asked, “Ano po ang mayron kay EDC Sir Jaycee De Guzman bakit po biglang lumipad at from 4.95 kahapon ngayon naging 7.00 ? wow napaka suwerte naka abang nito kahapon..”
I replied, “Andy, ganito yan. Maide-delist si EDC sa PSE soon. Kailangan nyang bilhin ulit yung shares ng minority shareholders. Bibilhin nya sa halagang P7.25 per share. Last Friday, nagsarado sa P4.95 per share ang EDC. Ilang percent ang difference between P7.25 and P4.95? Answer: 46%. Dahil generous si EDC sa tender offer price nya, hindi ka ba makikibili-bili at makitampi-tampisaw sa pagmamadali na makabili ng shares ni EDC habang malayu-layo pa sya sa P7.25? Yun ang dahilan kung bakit may buying-spree ang mga tao kay EDC.”
As of August 9, 2018, at 03:30PM, the volume of EDC is 1,388.36% of the previous trading day.
This stock’s latest volume is already above its 30-day volume average.
Foreign investors are unwilling to do the “tender offer play” of the retail investors. EDC registered a Net Foreign Selling worth P97,899,400.00 as of August 09, 2018. On a 30-day trading period, EDC is on a Net Foreign Selling worth PHP140,486,762.00.
Trading participants of EDC with a 100% Buying and Selling Activity as of Aug-09-2018 at 03:30PM:
- 15 out of 86 participants or 17.44% of all participants registered a 100% BUYING activity
- 37 out of 86 participants or 43.02% of all participants registered a 100% SELLING activity
- Top 10 Players’ Buying Average: 6.9982
- Top 10 Players’ Selling Average: 6.9942
The psychological average price of the top 10 players as of Aug-09-2018 is from 6.9942 to 6.9942.
Here’s what I told (in vernacular) my social media followers about the significance of knowing the top 10 players’ buying and selling averages.
Kapag alam mo ang kanilang buying and selling averages, nakikita mo if nalalapit ba sa intraday high or intraday low ang kanilang average.
– If nalalapit sa intraday high ang buying average ng top 10 players, it’s a confirmation that they are willing to buy up.
– If nalalapit sa intraday low ang buying aveage ng top 10 players, ibig sabihin hindi ganun pa kataas ang conviction level nila na mag-buy-up.
EDC might continue to play actively between 6.98 and 7.00 tomorrow unless it closes above or below this range today.
Itong Price-Volume Distribution naman, antimano alam mo kaagad kung nasaan ang pinakamalalaking volume at highest number of trades. Kapag alam mo kung saan nakatambak ang biggest volume and the highest number of trades, ibig sabihin alam mo kaagad kung saan nangyari yung maaksyong transaction sa stock.
Yung area with the biggest number of trades and the highest number of volume kasi, dun may malaki/mataas na probability na magpabalik-balik (intraday movement) ang stock.
Hindi mo makikita ng ganito kabilis at ganito kasimple (in terms of presentation) ang info na to if aasa ka lang sa intraday chart na meron ka (kahit anong interval pa yan).
These are just a few of the MANY INSIGHTS na pwedeng hugutin sa mga proprietary charts ko.
Sana may access kayong lahat sa Private Clients Forum ng Equilyst Analytics para pwede ninyong itanong lahat ng tanong ninyo about these tools and how I use them when trading.
At kapag subscriber kayo, pwede rin kayong magrequest ng Top 10 Players chart at Price-Volume Distribution chart ng kahit na anong stock sa PSE na gusto ninyo with my interpretation sa mismong Private Clients Forum.
Yes, I can fluently explain these things to you not only in English but also in Filipino whether it’s Buwan ng Wika or not. 🙂
If you have EDC, I advise that you accept the tender offer of EDC. Otherwise, you’ll have to face a lot of work just to liquidate your shares.
Is it still okay to buy EDC tomorrow?
If you’re asking that question now that EDC is already at 7.00 apiece, entering a new position on this stock at this stage is not for you.
Retail investors are doing the “tender offer play.” Extreme fluctuations are not impossible to be seen starting tomorrow.
So if you’re still asking that question at this stage and price of EDC, you’re at risk of picking your heart on the floor every time EDC registers an extreme price fluctuation. Have peace of mind.
Latest posts by Jaycee De Guzman (see all)
- 20 Philippine Stocks with the Highest 5-Year Dividend Yield as of 2018 - February 21, 2019
- Xurpas: Bounce Away from 1.31 or Catch It between 0.72 and 1.05 - February 20, 2019
- Price-Volume Analysis: STR, PCOR, POPI, VUL, ABA, ZHI – 2.19.2019 - February 19, 2019